Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *  Service tax penalty can’t survive when assessee acted on dept.’s own view of non-taxability: Delhi High Court. *  GST section 74 extended limitation questionable when form 26AS mismatch was already known: Karnataka High Court grants interim relief. *  CGST demand prima facie impermissible after state GST settlement under section 128A: Bombay High Court. *  Supreme Court asks GSTAT to sympathetically consider delay as taxpayers pursued remedy before wrong forum. *  Supreme Court stays Tripura High Court ruling protecting genuine buyers from ITC denial over supplier’s GST default. *  Diary entries alone can’t prove clandestine removal of goods: CESTAT quashes excise penalty on steel trader. *  Customs could investigate preferential tariff claims even before sec. 28DA: Delhi High Court. *  Customs dept. relied on fake AI generated case laws: supreme court quashes Rs. 425.28 crore penalty. *  No GST exemption in affiliation and annual registration charges for admission or conduct Of examinations: GSTAT. *  Mere invoices, cheque payments insufficient to establish genuine movement of goods: GSTAT restores Rs. 43.44 lakh ITC demand. *  Consolidated GST show cause notice covering multiple financial years is not without jurisdiction: Delhi High Court. *  Construction of independent houses on separate plots not taxable as ‘Residential Complex’ without common facilities: CESTAT. *  GST penalty exceeding statutory maximum unsustainable; Allahabad High Court quashes ? 50,000/- penalty after taxpayer filed return and paid late fee. *  GST order against standard chartered bank passed without hearing set aside by Bombay High Court. *  Retracted statements can’t be relied upon without cross-examination: CESTAT quashes gold confiscation. *  Burden to prove misclassification lies on customs department: CESTAT. *  CESTAT quashes Rs. 98 lakh excise demand on clearance of used refractory brick scrap. *  Service tax demand on irrigation works quashed: Karnataka High Court rules sale of goods component not taxable as service. *  GSTAT restores tax and penalty for transporting iron scrap without E-way bill citing intent to evade tax. *  Madras High Court stays GST recovery from directors without opportunity to show cause under section 89. *  Madras high court stays GST recovery notice against directors; finds prima facie case on applicability of section 79(1)(c). *  Procedural lapses can’t justify harsh punishment without serious customs breach: CESTAT quashes customs broker licence revocation. *  Service tax payable on land leasing and sports complex charges: CESTAT. *  Settled customs dispute can’t be reopened through Article 226 challenge to interest liability: Delhi High Court. *  Mere facilitation of customs clearance can’t establish knowledge of smuggling: Madras High Court. *  GST registration cancellation stayed: Allahabad High Court questions 99% ITC utilisation cap under rule 86B. *  Composition scheme lapses automatically on crossing Rs. 1.5 crore turnover: GSTAT. *  Gujarat High Court quashes GST cancellation orders after officer relied on non-existent AI-generated case laws. *  Importers liable for customs duty benefits availed through manipulated scrips: Delhi High Court. *  Procedural E-way bill lapse alone can’t justify penalty where genuine transaction and absence of tax evasion are established: GSTAT.
Subject News *  Documentary evidence dominates probe, further custody unwarranted: mumbai court grants bail in Rs. 22.44 crore customs duty evasion case. *  Business premises can’t remain sealed for non-participation in GST search: Allahabad High Court. *  GST pre-deposit must be refunded proportionately when taxpayer partly succeeds in appeal: Bombay High Court. *  Supreme Court grants 30 days to file GST appeal; keeps pre-deposit issue open due to deposit in parallel CGST proceedings. *  GST demand can’t exceed amount proposed in SCN: Allahabad High Court quashes Rs. 20.47 Crore order. *  Hundreds-of-crores GST demand and heavy 10% pre-deposit no ground to bypass statutory appeal: Punjab & Haryana High Court. *  Delhi High Court refuses to entertain challenge to gold confiscation due to statutory appeal remedy and unexplained delay. *  Procedural error in customs broker licence inquiry can be rectified through remand: Delhi High Court. *  GSTR-2A mismatch alone can’t justify ITC denial without invoice-wise verification; personal hearing mandatory: GSTAT. *  GST order passed without uploading personal hearing notices violates sec. 75(4): Allahabad High Court. *  TAX EVASION - Sec. 74 GST SCN quashed for not spelling out fraud, wilful misstatement or suppression: Allahabad High Court. *  STPI’s SOFTEX certification and NoC charges taxable as business support services: CESTAT. *  Suspicion can’t replace proof: CESTAT quashes penalty in alleged gold-smuggling operation. *   Limitation runs from communication of order: Madras High Court upholds rejection of delayed GST Appeals. *  Rajasthan High Court quashes GST demand over unsigned show cause notice. *  ITC recovery upheld where supplier failed to deposit GST: Rajasthan High Court. *  Customs commissioner’s empowered to make port trust liable for duty on pilfered goods: Supreme Court. *  Rectification proceedings can’t be used to challenge an uncontested GST assessment through a writ petition: Andhra Pradesh HC. *  GST proceedings against deceased proprietor unsustainable without notice to legal heir: GSTAT. *  Mere availment of ineligible self-assessed ITC doesn’t amount to suppression without evidence of fraud or wilful misstatement: GSTAT. *  Disposal of mining overburden by entity authorised by mining lease holder constitutes taxable service: CESTAT. *  Toll plaza data not mandatory for ITC refund: GSTAT. *  Disputed GST fraud allegations require investigation: Punjab and Haryana High Court makes interim bail absolute in alleged fraud and GST fraud case. *  Non-manufacturer contractor liable to deposit excess excise duty collected from buyer: CESTAT. *  GST order can’t reject taxpayer’s reply as “not satisfactory” without reasons: Madhya Pradesh High Court. *  Uncorroborated statements can’t establish alleged diversion of duty-free goods: CESTAT. *  Erection services were not liable to service tax prior to 10th september 2004: CESTAT. *  Sec. 74 GST notice must spell out statutory ingredients for invoking extended tax demand proceedings: Allahabad High Court. *  No jurisdictional bar under section 6(2)(b) in parallel CGST SGST proceedings: Delhi High Court refuses to bypass GST appeal remedy. *  Madras High Court remits GST demand for fresh adjudication after taxpayer claims it was unaware of SCN following business closure.  

Comments

Print   |    |  Comment

GST UPDATE No 289 ON PRACTICAL DIFFICULTIES IN AMENDED GSTR-3B PART-3

GST UPDATE No 289 ON PRACTICAL DIFFICULTIES IN AMENDED GSTR-3B PART-3
We have extensively covered various presentational issues faced by the assessees in the new format of GSTR-3B which has been made applicable for the return filed for the month of August, 2022. In the present update, we seek to point out some more practical difficulties being faced by the assessees while filing their GSTR-3B in the new format.
We hereby discuss the various practical issues of presentation being faced by the assessees as follows:-
1. Adjustment of ITC pertaining to bill of entry not reflected in serial no. 4A(1) of GSTR-3B:- It is observed that at times, input tax credit of certain bill of entries are not reflected in the serial no. 4A(1) of the GSTR-3B due to technical glitches on the portal. However, the original copy of bill of entry and the imported goods have been received in the premises of the assessee. In such a scenario, the assessee will edit the amount mentioned in serial no. 4A (1) of the GSTR-3B itself.
Now, the question arises is in case where the imported goods are not received in the factory premises or the bill of entry is not received but the amount of input tax credit (say Rs. 11,000/-) is being reflected in GSTR-2B and the auto-populated figure of serial no. 4A(1), whether the said amount of Rs. 11,000/- is to be reduced from serial no. 4A(1) of GSTR-3B or the said amount of Rs. 11,000/- will need to be reflected as reversal under serial no. 4B(2) of GSTR-3B. Thereafter, if the amount is reflected as reversal, in such case, when the imported goods and bill of entry are received, the ITC of Rs. 11,000/- is to be claimed in serial no. 4A(1) and also reflected in serial no. 4D(1). In nutshell, whether assessee needs to follow the practise of reflection of discrepancy in the auto-populated figure with respect to import of goods in the same manner as is done for “all other ITC”? If the clarification issued vide Circular no. 170/02/2022-GST dated 06.07.2022 is pursued, it is found that reference is made to auto-population of table 4A of GSTR-3B from various tables of FORM GSTR-2B. Consequently, as the
circular does not specifically refer to table 4A(5), it appears that the mechanism as suggested needs to be followed for ITC pertaining to different clauses of table 4A. Hence, the practise of reflecting Rs. 11,000/- as reversal under serial no. 4B(2) of GSTR-3B needs to be followed. It is pertinent to mention here that as per provision contained in section 16(2)(aa) of the CGST Act, 2017 requires that in order to claim ITC, the details of invoice or debit note has been furnished by the supplier in GSTR-1 and such details have been communicated to the recipient in GSTR-2B. The provision does not mentions bill of entry so the input tax credit of bill of entry can be claimed irrespective of the fact that the said ITC is appearing in GSTR-2B or not. Consequently, there should not be any requirement to follow the mechanism of presentation as stated in the circular with respect to import of goods. Furthermore, following the practise as mentioned in the circular will increase complexities as it will lead to double reporting of figures thereby requiring in-depth analysis while filing annual return. However, in order to maintain consistency, the assessees may follow the mechanism of presentation as stated in the circular for ITC pertaining to import of goods also.
2. Treatment regarding discrepancy in auto-populated figure of ITC of ISD:- At times, it is possible that there is discrepancy in the auto-populated figure of ITC in serial no. 4A(4) of the GSTR-3B. For example- out of 5 invoices, ITC pertaining to 3 invoices are only being reflected in the auto-populated figure. In such a case, the assessee will again need to amend the figure reported in table 4A (4) by adding the amount of ITC pertaining to 2 invoices not considered in the auto-populated figure. Likewise, if in the above example, the assessee had not received 2 invoices, but ITC pertaining to the said 2 invoices (say Rs. 11,000/-) was reflected in the auto-populated figure, then the assessee needs to reflect the said amount of Rs. 11,000/- as reversal under serial no. 4B (2) of GSTR-3B. Thereafter, when the invoices are received by the assessee from ISD, the ITC of Rs. 11,000/- is to be claimed in serial no. 4A (4) and also reflected in serial no. 4D (1). The discussion as regards following the procedure as prescribed in the Circular no. 170/02/2022-GST dated 06.07.2022 is not repeated for the sake of brevity.
3. Treatment of auto-populated figure of RCM credit in serial no. 4A(3) of GSTR-3B:- The figure auto-populated in serial no. 4A(3) of theGSTR-3B is always amended as most of the time, the amount of tax paid under RCM is different from the RCM entries reflected in GSTR-2B. Moreover, the auto-populated figure may also consist of RCM entries, the ITC of which is blocked such as rent-a-cab services. Consequently, the assessee will have to reflect the ineligible portion of ITC pertaining to RCM as reversal under serial no. 4B(1) of the GSTR-3B. Needless to repeat that since the clarification refers to table 4A without specific clauses, it is not advisable to reduce the said ineligible input tax credit from table 4A(3) of GSTR-3B.
4. Complications due to amendment in invoices by suppliers:- Practically, invoices are amended by the suppliers due to which assessees are in dilemma to report the transaction in the new format of GSTR-3B. To illustrate- One invoice issued in the month of June, 2022 involving ITC of Rs. 4500/- was wrongly uploaded by the supplier in GSTR-1 as Rs. 4300/-. As the ITC was wrongly reflected in GSTR-2B as Rs. 4300/-, the recipient assessee did not claim the ITC in the month of June, 2022. Thereafter, supplier amended the invoice in the month of August, 2022, due to which the net effect of Rs. 200/- was being reported in the auto-populated ITC under table 4A(5) of
the GSTR-3B. The assessee is unclear as to how to report this transaction in the new GSTR-3B. In our opinion, the assessee is required to add Rs. 4300/- in serial no. 4A(5) in the month of August, 2022 and also report Rs. 4300/- in 4D(1) of GSTR-3B.
5. Credit note reflected in GSTR-2B but not received by the recipient assessee in August, 2022:- There may be situation that the supplier issues credit note for an earlier invoice, in the month of August, 2022 which is reflected in GSTR-2B and the auto populated figure of table 4B(2) for the month of August, 2022. However, the recipient assessee has not reversed the said ITC as the credit note is pending to be received by them. In such a case, the assessee will have to reduce the amount of table 4B(2) by the said credit. Thereafter, the assessee will report the said credit in table 4B(2) on actual receipt of the credit note in the subsequent month.
6. Debit note reflected in GSTR-2B but not received by the recipient assessee in August, 2022:- There may be situation that the supplier issues debit note for an earlier invoice, in the month of August, 2022 which is reflected in GSTR-2B and the auto populated figure of
table 4A(5) in the month of August, 2022. However, the recipient assessee has not availed input tax credit as the debit note is pending to be received by them. In such a case, the assessee will have to reverse the said ITC in table 4B(2) and also reflect the said ITC in table 4D(1). Thereafter, the assessee will report the said ITC in table 4A(5) on actual receipt of the debit note in the subsequent month.
The list of problems faced by the assessees while filing GSTR-3B in new format is increasing day by day. It is hoped that the government issues suitable clarification to resolve various presentational disputes at the earliest possible so that proper compliance of filing GSTR-3B in the new format is being done by the assessee.
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com